Ensuring supply and stable prices to safeguard the grain market
2025-03-20
This year's Government Work Report proposed an expected target of around 1.4 trillion kilograms of grain production. Faced with the complex and severe domestic and international situation, experts believe that it is necessary to strengthen the resilience of stable grain prices and supply, ensure the achievement of this year's expected grain production targets, and lay a solid foundation for promoting sustained economic recovery and improvement. Grain prices are gradually returning to a reasonable level. According to data from the National Grain and Material Reserve Bureau, as of now, the cumulative purchase of autumn grain in China has exceeded 300 million tons, equivalent to 60% of autumn grain production. From the perspective of rice, the peak season purchase of mid late rice has successfully ended at the end of February, with a total purchase of 105 million tons. The market price is generally stable, and the characteristics of high quality and good price are obvious. In the past two years, due to various factors at home and abroad, the prices of major grain varieties have been running weakly. Except for rice, which has remained relatively stable, corn, wheat, and soybeans have all fallen significantly, affecting farmers' income from grain production. The relevant person in charge of the National Grain and Material Reserve Bureau stated that since the autumn grain market was launched last year, they have actively implemented the policy of minimum purchase price for rice, increased the collection and storage of corn, promoted the sales and processing conversion of soybeans, focused on promoting the connection between production and sales, stimulated market vitality, and ensured that grain prices remain at a reasonable level, firmly guarding the bottom line of farmers' ability to sell their grain. From the perspective of corn, after the Spring Festival, with the further implementation of collection and storage control measures, market confidence continues to recover, and corn prices have risen. From the perspective of soybeans, with the resumption of work and production by enterprises and the opening of schools, the demand for replenishment by various entities has increased, and the bullish atmosphere in the market has strengthened. Traders have increased their enthusiasm for purchasing and continue to raise purchase prices. Renowned expert on agriculture, rural areas, and farmers, and vice president of Liaoning University, Qiu Huanguang, stated that low-priced grain imports are an important reason for the decline in domestic grain prices. In 2024, China's grain imports will reach 158 million tons, with sufficient supply in the domestic market and an imbalance between production and trade, resulting in low grain prices and affecting farmers' income and enthusiasm for growing grain. It is urgent to improve the coordination mechanism between agricultural product trade and production, control the pace and scale of grain imports, promote the prices of important agricultural products such as grain to remain at a reasonable level, stabilize market supply and demand, and prevent cheap grain from harming farmers. The imposition of tariffs does not affect food security. Recently, in response to the tariffs imposed by the United States and Canada, China has imposed tariffs on some imported goods originating from the United States, including a 15% tariff on wheat and corn, and a 10% tariff on sorghum and soybeans; Impose a 100% tariff on rapeseed oil, oil residue cake, and peas originating from Canada. Wang Liaowei, Senior Economist at the National Grain and Oil Information Center, stated that imposing tariffs on some agricultural products from the United States and Canada will not affect the stable supply of grain in China. In 2024, China's grain production exceeded 1.4 trillion catties for the first time, with a per capita grain possession of 1000 catties and inventory at a historically high level. Wang Liaowei stated that after the increase in taxes, the cost of grain has increased, which is conducive to reducing the impact of low-priced imported grain on the domestic market, expanding domestic grain consumption, driving the price recovery of domestic corn, soybeans, rapeseed and other crops, and protecting the interests of grain farmers. In recent years, China has actively expanded the range of countries from which agricultural products are imported, gradually forming a diversified import pattern and effectively resolving the threat brought by single channel dependence. The dependence of China's grain imports on the single market has significantly decreased, which can effectively cope with the impact of the uncertainty of the international grain situation, "said Wang Liaowei. Qiu Huanguang stated that China's imposition of tariffs on some agricultural products from the United States and Canada is a countermeasure against these two countries' unilateral provocation of trade frictions, and to safeguard China's industrial security and farmers' interests. At the same time, China has always adhered to the basic national policy of opening up to the outside world, and fully granted zero tariff treatment to all products from the least developed countries that have established diplomatic relations with China, helping their economic development and improvement of people's livelihoods. Ensuring the achievement of expected grain production targets and ensuring stable and high yields of grain are always fundamental to ensuring food security. Qiu Huanguang stated that we should strengthen agricultural technology and equipment support, develop new quality agricultural productivity according to local conditions, give wings to agriculture with technology, and fully unleash the potential for increased production and efficiency. Strengthen the modernization of agricultural infrastructure, promote high-quality construction of high standard farmland, comprehensively improve agricultural disaster prevention and reduction capabilities, break away from relying on the weather for survival, and achieve drought and flood protection. Zhang Xuebiao, a researcher at the Institute of Agricultural Information of the Chinese Academy of Agricultural Sciences and director of the International Intelligence Office, stated that to achieve the expected goal of grain production, it is necessary to further increase policy support for strengthening agriculture, benefiting farmers, and enriching farmers, implement the minimum purchase price policy for rice and wheat, improve subsidies for corn and soybean producers and rice, and stabilize the subsidy policy for protecting farmland fertility. In response to the problem of grain finance inversion faced by major grain producing counties, it is necessary to reduce the proportion of county-level premium subsidies for agricultural insurance in these counties, and promote the expansion of the coverage area for full cost insurance and planting income insurance for rice, wheat, corn, and soybeans. Establish a sound reward and incentive system for major grain producing areas, and increase support for major grain producing counties. The low efficiency of grain cultivation and the low added value of grain processing products are important reasons. Qiu Huanguang stated that we need to improve the comprehensive efficiency and competitiveness of the grain industry. Adhere to market orientation and quality orientation, fully tap into the resources of rural "local specialties", strengthen the deep processing of grain products and fine processing of food, make full use of the "agricultural head and work tail" and "grain head and food tail" aspects, improve the level of the entire industry chain, create a number of township and local brand names with regional characteristics, and drive farmers' income growth. (New Society)
Edit:Yao jue Responsible editor:Xie Tunan
Source:Economic Daily
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